JK Lakshmi Cement - Better than expected & moreover sounds confident of ôRevivalö - PhillipCapital

JK Lakshmi Cement (JKLC) announced its Q2FY14 results. The results have been better than our and street estimates. We also hosted a call with the Management of JKLC. The Management sounded fairly optimistic of demand revival in North India, very shortly (as early as 15 days). The Management also sounded much more confident this time that Q3FY14 onwards the cyclical upturn may begin. Projects of JKLC are underway as per schedule which will give JKLC a continuous volume boost for the next 2-3 years. JKLC is likely to be one of the rare cement companies which will be reporting +5% volume growth YoY in Q2FY14. If JKLC could have a hold on its realisation/tonne, probably it would have outperformed other cement companies, atleast as far as growth numbers are concerned for Q2FY14.

Source : Equity Bulls

Keywords